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`More could have been done'
May, 04th 2007
The Finance Minister, Mr P. Chidambaram's reply to the debate on the Finance Bill in the Lok Sabha on Thursday met with mixed reaction from industry bodies. Apart from stating that much more could have been done to enhance the competitiveness of industry, they expressed dismay over the Government's move to retain Fringe Benefit Tax on ESOPs.

On inflation, the Confederation of Indian Industry said that a 4-4.5 per cent inflation target may not be compatible to the current high growth rate trajectory followed by the country.

FICCI, however, said that to reduce inflation more selective measures might be considered for augmenting supplies of commodities that are causing price rise. The chamber also expressed dismay as ESOPs continue to remain under the ambit of FBT, though the fair market value of shares would now be determined on the date of vesting of options.

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